REPORT ON HRM PRACTICES AT HAIER

Student Name: Rabbia Shafiq

Roll No: 407609
Govt. College University Faisalabad, ILM College
Harbanspura, Lahore

1. Introduction
Haier, a Chinese multinational home appliance and consumer electronics company, has grown
into one of the world's largest manufacturers in its industry. Established in 1984, Haier has
expanded its operations to numerous countries, providing a wide range of products and services.
A key driver of its success is its innovative approach to Human Resource Management (HRM).
Haier’s HRM is rooted in its management philosophy known as the "Rendanheyi model," which
emphasizes the alignment of individual employee goals with organizational goals. This unique
HR strategy has enabled the company to cultivate a flexible, empowered workforce that
contributes to its rapid growth and continuous improvement.

Haier views HRM as a critical component in its global competitiveness. By decentralizing

decision-making and promoting a culture of entrepreneurship within the company, Haier
empowers its employees to take ownership of their work. Haier’s HR practices not only aim to
maximize individual potential but also ensure that the company as a whole adapts quickly to
changes in the market and technology, positioning itself as a leader in innovation.

A. Importance of HRM in an Organization

In Haier, HRM plays a pivotal role in ensuring that the company remains agile and responsive to
the demands of the global market. With over 80,000 employees spread across various countries,
effective HRM is essential for managing such a large and diverse workforce. Haier’s HR
department focuses on talent development, employee engagement, and performance management
to align individual contributions with the company's strategic goals. This alignment is critical, as
Haier’s decentralized organizational structure allows employees at all levels to contribute to
decision-making and innovation, ensuring a steady flow of ideas that help the company stay
competitive.

Moreover, Haier's HRM framework facilitates the integration of global and local talent,
leveraging the diversity of its workforce. It emphasizes the continuous development of skills and
competencies to meet changing market needs. Haier's commitment to fostering a high-
performance culture through HRM has been instrumental in its ability to enter new markets and
sustain its competitive edge. Through careful planning, talent management, and employee
empowerment, Haier ensures that its workforce remains engaged, productive, and aligned with
the company’s long-term goals.

B. Understanding Culture Environment with Changing World of Technology

Haier has embraced the rapidly changing world of technology by fostering a culture that values
innovation and adaptability. The company has invested heavily in technology, from smart
appliances to IoT (Internet of Things) platforms, which has transformed its business model. This
technological shift has been accompanied by a corresponding evolution in Haier’s HRM
strategies. The company has created an organizational culture that encourages constant learning
and adaptation to new technological trends, ensuring that its employees are equipped with the
skills required for the digital age.
One of the key aspects of Haier’s HRM is its focus on building a "microenterprise" culture
within the organization. Employees are empowered to operate as entrepreneurs within the
company, with the autonomy to manage projects and develop new ideas. This approach not only
enhances innovation but also ensures that Haier remains competitive in an increasingly digital
and automated world. By promoting a culture that blends technological advancement with
entrepreneurial spirit, Haier has successfully maintained a workforce that is both flexible and
future-ready.

C. Workforce Diversity
Workforce diversity is another cornerstone of Haier’s HRM strategy. With operations in over 160
countries, Haier manages a highly diverse workforce, which includes employees from various
cultural, ethnic, and professional backgrounds. This diversity is seen as a strength, as it brings
together different perspectives, ideas, and problem-solving approaches. Haier’s HR policies are
designed to harness the benefits of this diversity, ensuring that employees are treated equitably
and given the opportunity to thrive regardless of their background.

Haier has also implemented various programs to promote inclusivity and cross-cultural
collaboration. Its decentralized management model further enables local teams to tailor their
strategies to the cultural nuances of the regions in which they operate. This focus on diversity not
only enhances employee satisfaction but also strengthens the company’s ability to innovate and
cater to a wide range of customers globally. By fostering an inclusive workplace where diversity
is valued, Haier has been able to create a dynamic and adaptable workforce, essential for its
continued global success.

D. Ethical Issues in HRM

Ethical considerations are paramount in HRM, and Haier is committed to maintaining high
ethical standards in all aspects of its operations. The company recognizes that ethical HR
practices are essential for building trust, enhancing employee morale, and ensuring compliance
with local labor laws and regulations. Haier’s HRM policies prioritize fairness, transparency, and
respect in all employee interactions, promoting an ethical workplace culture that aligns with the
company’s core values.

One of the key ethical issues in HRM is ensuring equitable treatment of employees. Haier is
dedicated to promoting diversity and inclusion, ensuring that all employees have equal access to
opportunities for advancement and professional development. The company actively monitors its
hiring, promotion, and compensation practices to prevent discrimination and biases, fostering a
fair and inclusive work environment. By establishing clear policies and providing training on
ethical behavior, Haier aims to create a workplace where every employee feels valued and
respected.

Another ethical issue that Haier addresses is employee privacy and data protection. As
technology plays a significant role in HRM, Haier recognizes the importance of safeguarding
employee information. The company adheres to strict data protection policies, ensuring that
employee records are handled with care and confidentiality. By being transparent about data
collection and usage practices, Haier builds trust with its employees and demonstrates its
commitment to ethical HRM.

Furthermore, Haier promotes ethical leadership at all levels of the organization. Leaders are
encouraged to model ethical behavior and to create an environment where employees feel
empowered to voice their concerns and report unethical practices. This commitment to ethical
leadership not only enhances organizational integrity but also contributes to a positive workplace
culture where employees are motivated to perform at their best.

2. HRM Functions and Strategies

At Haier, the Human Resource Management (HRM) functions and strategies are deeply
intertwined with the company's overall business objectives. Haier has adopted a highly
innovative approach to HRM, where the emphasis is on aligning the personal goals of employees
with the organizational goals through its "Rendanheyi" management model. This model
empowers employees to act as entrepreneurs within the company, giving them the freedom to
pursue initiatives that can drive both personal growth and company performance.

One of the core strategies of Haier's HRM is decentralization. Instead of a traditional hierarchical
structure, Haier operates as a network of independent micro-enterprises, where small teams are
given autonomy to make decisions, manage their resources, and take responsibility for their
outcomes. This strategy encourages accountability, innovation, and engagement, creating a more
dynamic and responsive organization. Another key HRM strategy at Haier is talent development.
The company invests heavily in learning and development programs, aiming to continuously
enhance the skills of its workforce and prepare them for future technological advancements.

A. The Strategic Nature of HRM

At Haier, Human Resource Management (HRM) is not just an administrative function; it is a
strategic component that directly aligns with the company's business goals and long-term
objectives. Haier has pioneered a unique business model called the "Rendanheyi" system, which
transforms traditional organizational hierarchies into smaller, independent micro-enterprises.
This model gives employees more autonomy and accountability, aligning their personal goals
with the overall success of the company. HRM plays a pivotal role in facilitating this strategy by
ensuring that the right talent is recruited, trained, and empowered to take on these
responsibilities.

In a globalized, fast-paced business environment, Haier's HR strategy focuses on agility,

flexibility, and innovation. Haier’s HRM practices are designed to foster a culture of
entrepreneurship within the organization, where employees are seen as business partners rather
than mere workers. This requires HR to adopt a forward-thinking approach, anticipating future
talent needs, and aligning HR initiatives with technological advancements and market trends. For
example, HR is integral in the company's use of digital platforms for recruitment, performance
management, and employee development, ensuring Haier remains competitive in a technology-
driven world.

Additionally, Haier’s HRM is strategically involved in global talent management, as the

company operates in diverse international markets. Haier’s HR team works to balance the global
vision with local execution, ensuring that HR policies and practices are adapted to fit the cultural
and regulatory environments of each region. By strategically aligning HR with the company’s
international expansion plans, Haier ensures that its workforce is equipped to meet global
challenges while maintaining high levels of employee engagement and performance.

B. HRM Functions
Haier’s HRM functions are designed to foster a culture of innovation and high performance. Key
functions include:

Recruitment and Selection: Haier’s recruitment process is focused on attracting

entrepreneurial-minded individuals who can thrive in a decentralized, dynamic environment. The
company places a strong emphasis on selecting candidates who not only possess technical skills
but also align with the company's innovative culture.

Training and Development: Continuous employee development is a priority at Haier. The

company offers a range of training programs designed to improve both soft and technical skills.
Haier has a dedicated platform for skill enhancement and encourages employees to participate in
cross-functional projects, which help them acquire new skills and gain diverse experiences.
Performance Management: Haier’s performance management system is unique due to its
decentralized structure. Instead of traditional top-down evaluations, employees are assessed
based on the outcomes of their micro-enterprise projects. This performance management system
encourages accountability, as employees’ compensation and career progression are directly
linked to the success of the projects they manage.

Compensation and Benefits: Haier offers competitive compensation packages that are often tied
to the performance of individual micro-enterprises. This structure incentivizes employees to
innovate and take ownership of their roles, as their financial rewards are directly linked to the
success of their initiatives.

C. External Factors Affecting HRM

Haier's HRM strategies are influenced by various external factors, including:

Globalization: As a multinational company, Haier operates in diverse cultural and economic

environments. This global presence requires the HRM function to adapt to different labor laws,
cultural norms, and market conditions in each country. HR strategies must be flexible enough to
accommodate local differences while maintaining alignment with Haier’s overall corporate
objectives.

Technological Advancements: The rapid pace of technological innovation is a significant factor

influencing Haier’s HRM. The rise of smart technology and the Internet of Things (IoT) has not
only transformed Haier’s product offerings but also the skills required from its workforce. As a
result, Haier places a strong emphasis on continuous learning and upskilling, ensuring its
employees remain competitive in a technology-driven world.

Economic and Political Factors: Economic conditions, such as fluctuations in currency values
and political factors like changing trade policies, also impact Haier’s HRM strategies. The
company must navigate these challenges by adapting its workforce management and
compensation structures in different regions to ensure sustainability and profitability.

Social and Cultural Trends: Social trends, such as increasing demand for workplace diversity
and inclusivity, have influenced Haier's HR policies. The company has responded by promoting
a diverse and inclusive work environment, ensuring that its HRM practices align with global
standards of equity and fairness.
 D. Disciplinary Actions
Haier's approach to disciplinary actions aligns with its broader philosophy of employee
empowerment and accountability. Given the decentralized nature of the organization,
responsibility for discipline primarily lies with the individual micro-enterprises. However, Haier
ensures that clear policies are in place to maintain professional behavior and performance
standards across the company.

Preventive Measures: Haier believes in preventing disciplinary issues through proactive

management. This is achieved through open communication, regular feedback, and performance
coaching. Managers are encouraged to address potential issues early on and provide the
necessary support to help employees improve.

Progressive Discipline: In cases where issues arise, Haier typically employs a progressive
discipline approach. This process begins with verbal warnings, followed by written warnings if
necessary. More serious infractions may result in suspension, demotion, or termination,
depending on the severity of the offense.

Peer Accountability: A unique feature of Haier’s disciplinary process is peer accountability.

Since teams operate as micro-enterprises, employees are often accountable to their peers for their
performance and behavior. This creates a system where discipline is not just top-down but is also
influenced by team dynamics, fostering a collaborative work environment.

Appeals Process: Haier provides employees with an opportunity to appeal disciplinary

decisions. This process ensures fairness and transparency, giving employees a chance to explain
their side of the issue before any final actions are taken.

3. Effective Job Analysis

Job analysis is a critical HR function at Haier, as it helps the company align employee roles with
its broader organizational objectives, particularly within its innovative "Rendanheyi"
management model. In Haier’s decentralized system, effective job analysis ensures that
employees understand their responsibilities, contribute to their micro-enterprises, and add value
to the organization.

At Haier, job analysis focuses on both technical competencies and entrepreneurial skills. Since
employees are empowered to act as leaders within their micro-enterprises, job roles are designed
to encourage decision-making, innovation, and collaboration. The analysis goes beyond
traditional job descriptions by identifying key performance indicators (KPIs) that align
individual responsibilities with team and organizational goals. Haier’s HR department works
closely with department heads to ensure that job roles are regularly reviewed and updated to
reflect changes in technology and market demands.

By performing regular job analysis, Haier ensures that each role supports its mission of
customer-focused innovation and operational efficiency. This proactive approach helps
employees remain productive, adaptable, and aligned with the company’s evolving business
needs.

A. Organizational Framework
Haier’s organizational framework is unique due to its emphasis on decentralization. The
company operates a flat structure composed of small, autonomous "micro-enterprises" that
function almost like independent startups within the larger organization. Each micro-enterprise is
responsible for its own decision-making, performance, and outcomes, which drives
entrepreneurship at every level of the organization.

This framework allows Haier to remain agile and responsive in a fast-paced global market. By
empowering employees to take ownership of their projects and allowing them to function as
entrepreneurs, Haier fosters an environment of accountability and creativity. This structure also
creates a direct link between individual performance and organizational success, as each micro-
enterprise is evaluated based on its contribution to the overall company objectives.

The framework also encourages collaboration and adaptability. As new opportunities or

challenges arise, micro-enterprises can be quickly restructured or formed, ensuring that Haier can
pivot without the delays often associated with hierarchical decision-making. This structure has
been instrumental in Haier’s ability to continuously innovate and expand into new markets.

B. Linking Organizational Strategy to HRM

Haier’s HRM practices are closely aligned with its organizational strategy. The company’s
overarching strategy is built on innovation, customer satisfaction, and global expansion, and its
HRM functions are designed to support these goals. Haier’s focus on decentralization and
entrepreneurship is reflected in its recruitment, training, and performance management
processes. By hiring individuals who thrive in a flexible, innovative environment, Haier ensures
that its workforce is equipped to meet its strategic goals.
Moreover, Haier’s HRM is closely linked to its customer-centric strategy. Each micro-enterprise
is tasked with responding directly to customer needs, and HRM plays a key role in training
employees to think from a customer’s perspective. Performance management is structured
around customer outcomes, ensuring that employee efforts contribute directly to Haier’s strategic
goal of delivering high-quality, innovative products and services.

By linking HRM with organizational strategy, Haier ensures that its workforce is both motivated
and aligned with the company's long-term goals. This alignment allows Haier to achieve
operational efficiency, improve customer satisfaction, and maintain a competitive edge in the
global market.

C. Methods and Techniques of Job Analysis

At Haier, job analysis is conducted using a variety of methods to ensure that roles are clearly
defined and aligned with the company’s objectives. The techniques employed are designed to
capture both the technical and entrepreneurial aspects of each role, given Haier’s decentralized,
innovative structure.

Observation Method: In certain cases, Haier uses the observation method to analyze jobs,
particularly for roles that involve hands-on tasks, such as manufacturing or technical services.
HR professionals or managers observe employees as they perform their tasks, allowing them to
identify the key skills, behaviors, and activities required for each role. This method helps in
defining job responsibilities and performance expectations.

Interview Method: Haier frequently uses interviews to gather detailed insights from employees
and managers regarding specific job roles. These interviews allow HR professionals to
understand the skills, qualifications, and challenges associated with each position. It also
provides a platform for employees to voice their expectations and any changes that may improve
job performance, aligning individual roles with the company’s evolving needs.

Questionnaire Method: Haier also employs structured questionnaires to collect data on job
roles. These questionnaires typically include questions about the duties, responsibilities, required
skills, and challenges of a particular job. This method is especially useful when analyzing jobs
across different regions or departments, as it allows for consistency and comprehensive data
collection.
Task Inventory Method: To ensure that each job role is closely aligned with Haier’s
entrepreneurial model, the company often uses the task inventory method, where a list of all the
tasks associated with a particular role is created. Employees and managers then rank these tasks
based on importance and frequency. This allows Haier to identify the most critical tasks for each
role and develop KPIs that reflect their significance.

Critical Incident Technique: This technique is used to identify key behaviors that lead to either
success or failure in specific roles. Managers and employees recount specific incidents where the
employee’s actions had a significant impact on performance. By analyzing these incidents, HR
can fine-tune job descriptions and identify the skills and behaviors necessary for success in
various roles.

By using these methods and techniques, Haier ensures that its job analysis process is
comprehensive and aligned with its innovative, customer-centric business model. The
combination of structured interviews, task inventories, and critical incident analysis allows Haier
to continuously update and refine its job roles, ensuring that employees are positioned to
contribute effectively to the company’s success.

4. Employee Recruitment
At Haier, employee recruitment is a strategic function designed to identify individuals who can
thrive in the company’s highly decentralized and entrepreneurial work environment. Haier’s
recruitment process focuses on attracting individuals who not only possess the necessary
technical and professional skills but also demonstrate the ability to innovate and take ownership
of their projects. Haier’s unique "Rendanheyi" management model, which promotes autonomy
and accountability, requires employees who are not just skilled workers but entrepreneurial
thinkers.

The recruitment process at Haier is tailored to assess both the technical competencies and the
cultural fit of candidates. It includes a combination of traditional interview techniques,
assessments, and tests designed to gauge a candidate’s ability to operate in a dynamic, fast-paced
environment. Haier also places a strong emphasis on continuous recruitment, ensuring that it
builds a pipeline of talented individuals capable of adapting to the company’s evolving needs and
technological advancements.

A. Recruiting Goals
Haier’s recruiting goals are aligned with its business strategy and organizational culture. Key
goals include:
Attracting Entrepreneurial Talent: Given Haier’s decentralized structure, the company’s primary
goal is to recruit individuals who possess entrepreneurial spirit. These candidates must
demonstrate the ability to take initiative, lead projects, and drive innovation. Haier seeks
employees who can think independently, make strategic decisions, and take ownership of their
micro-enterprises within the larger organization.

Fostering Innovation: Innovation is at the core of Haier’s business strategy, and its recruitment
efforts are designed to attract individuals who can contribute to this goal. The company seeks
employees who can bring fresh ideas, challenge the status quo, and contribute to the
development of new products, services, and processes. Haier aims to recruit talent that can help
the company remain competitive in an industry driven by technological advancements.

Building a Global Workforce: As a multinational company, Haier is focused on building a

diverse and inclusive workforce that reflects the global markets it serves. One of its recruitment
goals is to attract talent from different regions, cultures, and backgrounds, ensuring that the
company has the skills and perspectives needed to succeed in a competitive global environment.

Retaining Top Talent: In addition to attracting new employees, Haier’s recruitment efforts are
designed to ensure that the company retains its top talent. This goal is supported by recruitment
practices that focus on cultural fit and long-term career development, helping to reduce turnover
and create a stable, motivated workforce.

B. Recruiting Sources
To meet its recruiting goals, Haier leverages a variety of recruitment sources. These sources are
carefully selected to attract candidates who align with the company’s values and objectives.

Internal Recruitment: Haier encourages internal mobility and promotes from within whenever
possible. By offering employees opportunities to take on new challenges and advance within the
organization, Haier fosters a culture of continuous development and career progression. Internal
recruitment is also aligned with Haier’s micro-enterprise model, as employees are often given
opportunities to move between teams and projects, gaining diverse experience across the
organization.

University Partnerships: Haier has established strong partnerships with universities around the
world to recruit top graduates. The company participates in job fairs, internship programs, and
campus recruitment events, aiming to identify young talent who can bring fresh ideas and
innovation to the company. These partnerships allow Haier to attract highly skilled graduates
who are eager to work in a dynamic, fast-paced environment.

Online Recruitment Platforms: Haier makes extensive use of online job portals and
professional networking platforms such as LinkedIn to source talent globally. This approach
allows the company to reach a wide pool of potential candidates, particularly in regions where it
has a strong presence. Online platforms also help Haier attract tech-savvy candidates, which is
crucial for the company as it continues to expand into IoT (Internet of Things) and smart
appliance markets.

Recruitment Agencies: In some cases, Haier partners with recruitment agencies to source
specialized talent, particularly for senior-level positions or roles requiring niche expertise. These
agencies provide access to a broader network of candidates, especially in international markets
where Haier may have limited local presence.

Employee Referrals: Haier values employee referrals as a reliable source of qualified

candidates. Through its employee referral program, the company encourages its staff to
recommend potential hires, rewarding them for successful referrals. This approach not only helps
Haier find talented candidates who are likely to fit well within the company culture but also
fosters a sense of ownership and involvement among current employees.

C. Global Perspective
As a multinational organization with a presence in over 160 countries, Haier adopts a global
perspective in its recruitment efforts. The company’s HRM strategy emphasizes the importance
of building a culturally diverse and geographically dispersed workforce that can drive its global
expansion and innovation initiatives. By recruiting talent from different regions, Haier ensures
that its workforce is equipped with the knowledge and skills needed to serve customers in a
variety of markets.

Cross-Cultural Competence: One of Haier’s key global recruitment goals is to attract

employees with cross-cultural competence. The company recognizes that success in the global
marketplace requires an understanding of local cultures, languages, and consumer preferences.
Haier actively seeks candidates who can bridge cultural differences and help the company
navigate the complexities of global business.
Adaptation to Local Markets: Haier’s decentralized structure allows for local adaptation of its
global HR strategy. In each region where Haier operates, the company tailors its recruitment
efforts to meet the specific needs and preferences of the local labor market. This includes
working with local universities, adapting recruitment messages to local languages and cultures,
and offering region-specific benefits packages.

Global Mobility: Haier encourages global mobility among its workforce, offering opportunities
for employees to work in different regions and gain international experience. This approach not
only helps the company develop a workforce with a global mindset but also enhances employee
engagement and retention by providing diverse career paths.

Technological Integration: As Haier continues to expand its presence in the technology space,
its global recruitment efforts are increasingly focused on sourcing talent with expertise in
emerging technologies, such as artificial intelligence (AI), IoT, and big data. By recruiting tech-
savvy individuals from different parts of the world, Haier ensures that it remains at the forefront
of innovation in the home appliance and electronics industries.

Haier’s global perspective on recruitment allows the company to tap into a diverse talent pool,
fostering innovation, cultural adaptability, and a customer-centric approach that supports its
global expansion. By leveraging its global HR network and focusing on cross-cultural
competence and technological expertise, Haier is well-positioned to continue its growth as a
leader in the global marketplace.

5. Selection and Placement

A. Introduction
In the rapidly changing global business environment, having the right employees in the right
roles is crucial for any organization's success. At Haier, this concept is especially important due
to the company's unique "Rendanheyi" model, where self-managed teams (micro-enterprises)
operate with significant autonomy. As a result, the selection and placement of employees are key
HR functions designed to ensure that individuals are well-suited not only to their job roles but
also to the entrepreneurial and team-based culture of Haier.

The selection process at Haier goes beyond simply evaluating candidates’ technical skills; it is
focused on finding individuals who can thrive in a decentralized, self-managed environment.
Employees are expected to take ownership of their projects, make decisions independently, and
work collaboratively within small teams. Therefore, Haier’s selection process is tailored to
identify candidates who possess both the technical competencies and the entrepreneurial mindset
required to succeed in the company’s unique organizational structure.

B. Selection Process
Haier's selection process is comprehensive, ensuring that the company hires individuals who
align with its business goals and innovative culture. The process includes several stages:

Job Analysis and Requirement Identification: Before initiating the recruitment process, Haier
conducts a detailed job analysis to identify the specific skills, qualifications, and attributes
required for each role. Given Haier's decentralized model, this step also involves defining the
interpersonal and leadership qualities needed for employees to operate effectively within self-
managed teams.

Sourcing Candidates: Haier uses a variety of recruitment sources, including internal

promotions, online job platforms, university partnerships, and employee referrals, to attract
qualified candidates. The company is especially interested in candidates who demonstrate an
entrepreneurial mindset and can adapt to Haier’s dynamic, fast-paced environment.

Initial Screening: Once applications are received, Haier’s HR team conducts an initial screening
to filter candidates based on their qualifications, experience, and alignment with the company’s
core values. This stage may involve resume reviews, phone interviews, or automated screening
tools.

Assessments and Testing: To evaluate candidates' technical skills and problem-solving abilities,
Haier employs various assessment tools. For technical roles, this may include coding tests,
technical challenges, or case studies. For leadership roles, Haier may use personality assessments
and leadership aptitude tests to gauge the candidate's ability to lead self-managed teams.

Interviews: The interview process at Haier is thorough and often involves multiple stages. Initial
interviews may be conducted by the HR team to assess the candidate's cultural fit and
motivation, followed by technical interviews with department heads or team members.
Candidates are also evaluated on their ability to think independently and demonstrate innovation.

Peer Interviews and Team Compatibility: Given Haier’s team-oriented structure, candidates
often participate in peer interviews where existing team members assess the candidate’s fit with
the team’s culture and working style. This is especially important for roles within self-managed
teams, as these employees will need to collaborate closely and operate independently without
much supervision.

Final Selection and Offer: After all interviews and assessments are completed, Haier’s HR team
and department heads make the final selection based on the candidate’s performance throughout
the process. Successful candidates are offered positions that align with both their skills and the
needs of the organization.

Onboarding: Once a candidate is selected, Haier's onboarding process ensures that they are fully
integrated into the company’s decentralized structure and team environment. New employees
undergo orientation and training that familiarize them with the company's values, processes, and
goals, while also providing the tools necessary to succeed in their roles.

C. Selection for Self-Managed Teams

At Haier, a significant portion of the workforce operates within self-managed teams, also known
as micro-enterprises. These teams are responsible for their own decision-making, resource
allocation, and performance outcomes, meaning that the selection of employees for these roles
requires a specialized approach.

Teamwork and Collaboration: Haier places a strong emphasis on hiring individuals who excel
in teamwork and collaboration. In self-managed teams, employees must be able to communicate
effectively, manage conflict, and work toward shared goals without direct supervision. During
the selection process, candidates are assessed on their ability to work well within a team
environment. This often involves behavioral interviews and scenario-based assessments where
candidates are asked to demonstrate how they would handle real-world team challenges.

Entrepreneurial Mindset: Employees in self-managed teams at Haier must think like

entrepreneurs, taking ownership of their projects and being accountable for the team’s success.
As a result, the selection process focuses on identifying individuals with a high degree of
initiative, creativity, and decision-making ability. Candidates are evaluated on their past
experiences in leadership or autonomous roles, as well as their ability to identify opportunities
for innovation and improvement.

Adaptability and Problem-Solving: Self-managed teams at Haier operate in a dynamic, fast-

paced environment where adaptability is key. Candidates are assessed on their ability to handle
ambiguity and navigate change. This may involve problem-solving exercises or case studies
during the interview process that simulate the kinds of challenges faced by self-managed teams
in the workplace.

Cultural Fit: Since Haier’s self-managed teams operate with a high degree of autonomy, cultural
fit is critical. Employees must be aligned with Haier’s values of customer focus, innovation, and
empowerment. During the selection process, Haier looks for candidates who demonstrate a
strong alignment with the company’s mission and who are motivated to contribute to the team’s
and company’s success.

Leadership Potential: Although self-managed teams do not have traditional managers,

leadership is still crucial within these teams. Haier looks for individuals who can step up to lead
when necessary, guiding the team toward its goals. Candidates are often evaluated on their
leadership potential, even if they are not applying for formal leadership roles. This may involve
interviews or assessments designed to measure their ability to influence and inspire others.

6. Training and Development

Training and development play a critical role in Haier’s success as a global leader in home
appliances and technology. Haier’s decentralized, customer-centric "Rendanheyi" model requires
employees to be innovative, adaptable, and entrepreneurial. To maintain this culture of
continuous improvement, Haier invests heavily in the training and development of its employees
at all levels.

The company’s approach to training focuses on aligning individual employee goals with broader
organizational objectives. This includes not only technical training but also leadership
development, soft skills enhancement, and innovation-driven learning. Haier’s training programs
are designed to help employees acquire the skills necessary to succeed in a fast-paced, constantly
evolving global market. Training and development at Haier go beyond the traditional classroom
setting; it involves real-world experiences, mentorship, and cross-functional collaboration to
foster a dynamic learning environment.

Moreover, Haier’s focus on lifelong learning ensures that employees are prepared for future
challenges. The company’s learning ecosystem allows employees to develop new skills, move
into different roles, and even take on leadership positions within Haier’s micro-enterprises. This
investment in employee development is part of Haier’s strategy to maintain its competitive edge
in a rapidly changing technological landscape.
 A. Purpose of New Employee Orientation
New employee orientation at Haier serves several important purposes, particularly in aligning
new hires with the company’s culture, values, and strategic goals. As Haier operates through its
decentralized micro-enterprise model, it is critical that new employees quickly understand and
embrace the company’s unique structure and entrepreneurial philosophy. The orientation
program is designed to help new hires become productive and engaged members of the Haier
team.

Introduction to Company Culture: Haier’s new employee orientation focuses on immersing

new hires in the company’s values, such as customer-centric innovation, entrepreneurship, and
accountability. It is essential for new employees to understand the company’s “Rendanheyi”
model and how it shapes the way they will work and collaborate. The orientation provides
insight into Haier’s mission to innovate and put customer needs at the forefront, ensuring that
employees understand how their roles contribute to the company’s overall success.

Clarifying Roles and Expectations: Another key purpose of orientation is to clearly define the
new hire’s role within Haier’s unique framework. New employees are introduced to their specific
responsibilities, performance expectations, and the resources available to help them succeed. The
orientation also covers how they will be evaluated and provides an overview of Haier’s team-
based structure, which emphasizes accountability, autonomy, and results-oriented work.

Building Connections: Haier uses orientation as an opportunity for new hires to establish
relationships with their colleagues and managers. Given the decentralized nature of the
organization, it is important for new employees to network within their teams and across
different micro-enterprises. Orientation provides them with the opportunity to meet key
stakeholders, mentors, and team members, fostering collaboration from the start.

B. Employee Development Methods

Haier employs a variety of employee development methods to ensure continuous growth and
skill enhancement across the organization. These methods are tailored to the company’s
decentralized, entrepreneurial model, enabling employees to take ownership of their personal
development and contribute to the company’s innovation agenda.

On-the-Job Training (OJT): Haier places a strong emphasis on experiential learning through
on-the-job training. Employees are given real-world responsibilities from the start, allowing
them to learn by doing. This method is particularly effective in Haier’s self-managed teams,
where employees must take ownership of projects and make critical decisions that impact the
business. OJT allows employees to acquire practical skills while contributing to the company’s
objectives.

Mentorship and Coaching: Haier’s decentralized structure requires leaders to act as mentors,
guiding employees in their professional development. Through mentorship programs, employees
at all levels receive one-on-one guidance from senior leaders or experienced colleagues. This
personalized approach helps employees develop leadership qualities, navigate complex
challenges, and gain a deeper understanding of Haier’s entrepreneurial culture.

Cross-Functional Teams: To encourage innovation and collaboration, Haier frequently

organizes employees into cross-functional teams. These teams bring together employees from
different departments and micro-enterprises to work on specific projects or initiatives. By
participating in cross-functional teams, employees gain exposure to different areas of the
business, broaden their skill sets, and develop problem-solving abilities that are critical to Haier’s
success.

Leadership Development Programs: Given Haier’s focus on empowering employees to lead

their own micro-enterprises, leadership development is a core component of its employee
development strategy. Haier offers formal leadership training programs that focus on building
decision-making, strategic thinking, and innovation skills. These programs are designed to
prepare employees for leadership roles within their teams and across the broader organization.

Online Learning and Continuous Education: Haier offers employees access to a range of
online learning resources and courses. These resources allow employees to pursue continuous
education at their own pace, helping them stay up-to-date with the latest trends and technologies
in their field. This method of development is particularly important for roles that require
knowledge of emerging technologies like the Internet of Things (IoT) and artificial intelligence
(AI), areas in which Haier is heavily invested.

C. Evaluating Training and Development Effectiveness

Haier recognizes the importance of evaluating the effectiveness of its training and development
programs to ensure that they deliver measurable benefits to both employees and the organization.
The company employs several methods to assess whether its training initiatives are achieving the
desired outcomes.
Employee Feedback: One of the most direct ways Haier evaluates the effectiveness of its
training programs is by gathering feedback from employees who have completed the programs.
Surveys, interviews, and focus groups are conducted to assess how well the training met
employee expectations and helped them improve their performance. This feedback is used to
refine and improve future training initiatives.

Performance Metrics: Haier closely monitors employee performance before and after training
to determine whether the training has had a positive impact. This includes measuring
improvements in productivity, quality of work, and alignment with organizational goals. For
example, employees who undergo leadership development programs are evaluated based on their
ability to take on more responsibility, lead teams effectively, and contribute to innovation.

Key Performance Indicators (KPIs): Haier tracks specific KPIs related to the outcomes of
training programs. For technical roles, this might involve measuring the speed and accuracy of
task completion or improvements in innovation metrics, such as the number of new product ideas
generated. For leadership roles, KPIs might include team performance, employee engagement,
and customer satisfaction.

ROI Analysis: Haier uses return on investment (ROI) analysis to evaluate the cost-effectiveness
of its training programs. This involves comparing the costs of delivering training (such as
program development, facilitator fees, and time away from work) with the financial benefits
gained from improved employee performance, increased innovation, and higher retention rates. A
positive ROI indicates that the training has provided value to the organization.

Long-Term Impact Assessments: Haier also conducts long-term assessments to evaluate the
sustainability of training outcomes. This involves tracking the career progression of employees
who have participated in development programs, assessing whether they have taken on
leadership roles, and measuring their long-term contributions to the organization’s success. By
focusing on long-term impact, Haier ensures that its training programs have lasting benefits for
both employees and the company.

7. Career Development
Career development is a key component of Haier’s HR strategy, designed to align individual
employee growth with the company’s business objectives. Haier views career development as a
mutual investment, where the company provides opportunities for employees to enhance their
skills, while employees contribute to the company's success through innovation and leadership.
Haier’s unique organizational structure, centered around its "Rendanheyi" model, empowers
employees to take control of their career paths by treating each department or team as a micro-
enterprise. This model encourages personal ownership and accountability, making career
development an entrepreneurial journey for every employee.

Haier’s approach to career development focuses on equipping employees with the necessary
tools to grow within the company. Through mentorship, on-the-job experiences, leadership
training, and continuous learning opportunities, Haier ensures that employees can advance their
careers by developing both technical expertise and leadership qualities. Additionally, the
company promotes lateral career movement, allowing employees to gain cross-functional
experience by working in different areas of the business, which helps them develop a broad
range of skills and prepares them for leadership roles.

A. Career Stages
Haier’s career development programs are designed to support employees at every stage of their
career, from entry-level positions to senior leadership roles. Each stage of an employee's career is
met with targeted development opportunities to ensure growth and alignment with both personal
and company goals.

Exploration Stage (Early Career): This stage is characterized by self-discovery, skill

development, and exploring various roles within the organization. New employees at Haier are
encouraged to identify their strengths, interests, and areas of growth through hands-on
experience and learning. The company supports this stage by providing onboarding programs,
job rotations, and mentorship opportunities. New employees are also introduced to Haier’s
decentralized culture, where they can take on small projects within their micro-enterprises,
allowing them to experiment with different roles and responsibilities.

Establishment Stage (Mid-Career): During this stage, employees solidify their professional
identities and focus on achieving specific career goals. Haier encourages employees to pursue
leadership roles within their micro-enterprises, taking on greater responsibilities in decision-
making and project management. At this stage, employees are also encouraged to further develop
their technical skills or pursue cross-functional roles to broaden their expertise. Haier’s
performance management system helps guide employees by providing regular feedback,
enabling them to track their progress and adjust their career goals as needed.

Maintenance Stage (Advanced Career): In this stage, employees have typically achieved
stability in their careers and are focused on maintaining their professional standing, honing their
expertise, and potentially mentoring others. At Haier, employees in the maintenance stage often
take on leadership or coaching roles, helping younger team members grow and succeed. They are
also encouraged to contribute to the organization by driving innovation, optimizing processes,
and ensuring the sustainability of Haier’s business operations.

Disengagement Stage (Late Career): As employees approach retirement or consider moving

into less demanding roles, Haier provides support through flexible career options and transition
planning. Employees at this stage may move into advisory roles, where their wealth of
experience can be leveraged to guide the next generation of leaders. Haier also ensures that
employees in the disengagement stage receive opportunities for career satisfaction, helping them
to transition smoothly while continuing to add value to the organization.

B. Career Choices and Preferences

Haier recognizes that employees have different career preferences and personal aspirations, and
the company’s HR policies are designed to support these individual career paths. Haier’s
decentralized structure allows employees to make choices about their career development that
align with both their personal goals and the company’s objectives.

Entrepreneurial Career Paths: Given Haier’s focus on the "Rendanheyi" model, many
employees at the company pursue entrepreneurial career paths. Haier encourages employees to
think and act like entrepreneurs within the company, treating their teams or departments as
independent micro-enterprises. Employees with a strong preference for autonomy, innovation,
and leadership thrive in this environment. Haier provides the support and resources needed for
these employees to launch new projects, develop products, or lead business units, offering ample
opportunities for growth and advancement.

Specialized Career Paths: For employees who prefer to focus on developing deep expertise in a
particular area, Haier offers career paths that allow for specialization in technical or functional
domains. Employees with preferences for research, engineering, product design, or operations
can pursue highly specialized roles where they can continue to refine their skills and contribute
to Haier’s technological innovations. Haier provides specialized training, access to cutting-edge
technology, and opportunities for professional certification to help these employees achieve their
career goals.

Cross-Functional Career Paths: Haier encourages employees to explore cross-functional roles

as part of their career development. Employees with a preference for diverse experiences or who
aspire to move into leadership positions are encouraged to work in different departments and
take on a variety of roles throughout their careers. By gaining experience in different areas of the
business, employees can develop a broad understanding of Haier’s operations and become well-
rounded leaders. The company offers job rotations and project-based assignments to facilitate
cross-functional learning.

Global Career Opportunities: Haier’s status as a multinational company offers employees the
opportunity to work in different regions and countries. Employees with a preference for
international experience or who want to develop a global perspective can take on roles in Haier’s
various global offices. The company’s HRM strategy supports global mobility, allowing
employees to gain valuable cross-cultural experience while contributing to Haier’s global
expansion. For employees with preferences for global roles, Haier provides support in terms of
relocation, language training, and cultural adaptation.

Work-Life Balance and Flexibility: Haier also caters to employees who prioritize work-life
balance and flexibility in their career choices. For those who prefer roles that offer more
flexibility or less pressure, Haier provides opportunities to work in less demanding positions,
pursue part-time roles, or engage in projects that offer a slower pace. Haier’s HR policies support
work-life balance through flexible working hours, remote work options, and comprehensive
wellness programs.

8. Compensation
Compensation plays a critical role in Haier’s overall HR strategy, as it directly impacts employee
motivation, retention, and performance. At Haier, the compensation system is designed to reward
individual and team achievements while promoting the company’s entrepreneurial culture. Haier
uses a performance-based compensation model that aligns employee rewards with company
objectives, emphasizing both financial incentives and non-monetary benefits to attract and retain
top talent.

Haier’s compensation philosophy revolves around the idea of meritocracy, where employees are
rewarded based on their contributions to their micro-enterprises (self-managed teams) and
overall business success. Employees who demonstrate innovation, leadership, and ownership of
their roles are more likely to receive higher compensation through performance bonuses, profit-
sharing plans, and other financial incentives. The company also offers a range of benefits,
including health insurance, retirement plans, and opportunities for professional development,
further contributing to employee satisfaction and long-term commitment.

In addition to financial rewards, Haier places a strong emphasis on creating a positive work
environment that enhances job satisfaction. Employees are empowered to take ownership of their
work, make decisions independently, and contribute to the company's growth, which fosters a
sense of purpose and fulfillment. This holistic approach to compensation ensures that employees
feel valued both financially and in terms of their overall work experience.

A. Job Evaluation Methods

Job evaluation at Haier is crucial for determining the relative worth of each position within the
organization and ensuring fair and equitable compensation. Given Haier’s decentralized and
team-based structure, job evaluation focuses on both individual roles and the contributions made
by micro-enterprises to the overall business. Haier uses a combination of methods to evaluate
jobs systematically.

Point Factor Method: Haier often uses the point factor method to assess the value of jobs by
assigning points to specific compensable factors, such as skills, responsibilities, effort, and
working conditions. This method ensures that each job is evaluated based on objective criteria,
allowing Haier to determine the relative importance of each role within the company. Jobs with
higher point totals typically require more responsibility or expertise and are rewarded with
higher compensation.

Job Classification: Haier also uses job classification, which groups similar jobs into predefined
categories or grades. Each grade has specific compensation levels and benefits associated with it.
This method allows for consistency in pay across similar job functions and ensures that jobs
requiring similar levels of responsibility and skill are compensated fairly. It is particularly useful
in evaluating roles across Haier’s various micro-enterprises, as it standardizes pay structures
across departments.

Market Pricing: Given Haier’s position as a global company, market pricing is an important job
evaluation method. The company benchmarks its jobs against similar roles in the market, both
locally and globally, to ensure that it remains competitive in attracting top talent. Haier regularly
conducts salary surveys to understand the compensation trends within the home appliance and
technology sectors, using this information to adjust pay levels accordingly.

Job Ranking: For simpler or smaller roles within micro-enterprises, Haier sometimes employs
the job ranking method. This method involves ranking jobs based on their overall importance to
the organization without assigning specific point values. While it is less detailed than the point
factor method, job ranking is useful for evaluating jobs that are less complex and have a more
straightforward value to the company.
 B. Establishing Pay Structure
Establishing a pay structure at Haier involves balancing internal equity, external competitiveness,
and performance-based rewards. Haier’s pay structure is designed to support its decentralized,
performance-driven culture, ensuring that employees are compensated fairly based on their
contributions to the company’s success.

Internal Equity: Haier ensures that its pay structure promotes fairness within the organization.
Employees performing similar roles with comparable levels of responsibility and skill are placed
in the same pay grades, preventing internal pay disparities. Haier’s job evaluation methods, such
as the point factor system and job classification, help establish this internal equity by providing a
consistent framework for determining the value of each job.

Performance-Based Pay: Haier places significant emphasis on performance-based pay as part

of its compensation structure. Employees are rewarded for achieving business goals, driving
innovation, and contributing to the success of their micro-enterprises. Performance-based pay
can include bonuses, profit-sharing, and stock options. This approach motivates employees to
take ownership of their work and align their efforts with the company’s objectives.

Market Competitiveness: Haier’s pay structure is designed to be competitive with industry

standards. By benchmarking compensation against market data, Haier ensures that its pay levels
are attractive to current and prospective employees. This is particularly important in the
technology and home appliance sectors, where talent competition is fierce. Haier regularly
updates its pay structure based on changes in the labor market to maintain its competitive edge.

Pay Grades and Bands: Haier organizes its pay structure into pay grades and salary bands,
which are tied to the job classification system. Each grade or band corresponds to a specific
range of compensation, allowing flexibility for employees to earn within that range based on
their performance. As employees progress in their careers and take on more responsibilities, they
move up within the pay structure, receiving increases in pay and benefits.

Incentives and Non-Monetary Benefits: In addition to base pay, Haier offers various incentives
and non-monetary benefits, such as healthcare, professional development opportunities, and
work-life balance initiatives. These benefits are designed to complement the overall pay
structure, ensuring that employees feel supported and motivated to contribute to Haier’s success.

C. External Factors Affecting Compensation

Several external factors influence Haier’s compensation strategy, and the company must remain
adaptable to maintain its competitive positioning in the global market.

Economic Conditions: Economic fluctuations, such as inflation, economic growth, or

recessions, can significantly affect Haier’s compensation decisions. During periods of economic
growth, Haier may increase salaries to attract and retain talent in a competitive market.
Conversely, during economic downturns, the company may need to tighten compensation
budgets while still ensuring that top performers are adequately rewarded to maintain engagement
and productivity.

Labor Market Trends: The demand and supply of talent in the market are major factors
influencing Haier’s compensation strategy. In a competitive labor market, where skilled workers
are scarce, Haier may need to offer higher salaries or better benefits to attract and retain talent.
Conversely, in a more saturated labor market, compensation levels may remain stable or slightly
adjusted. Haier regularly reviews industry compensation data to stay competitive in recruiting
top talent, especially in the technology and home appliance sectors.

Globalization: Haier operates in multiple countries, and the global nature of its business affects
its compensation strategy. Differences in labor laws, cost of living, and local market conditions
across various regions require Haier to adapt its compensation structures to fit local
environments. For example, compensation packages for employees in North America or Europe
may differ from those in Asia, reflecting regional economic conditions, labor market standards,
and cost-of-living adjustments.

Legal and Regulatory Factors: Haier must comply with labor laws and regulations in every
market where it operates. These laws can dictate minimum wage requirements, overtime pay, and
benefits, which directly affect the company’s compensation structure. Changes in labor
legislation, such as updates to wage laws or requirements for employee benefits, can impact
Haier’s pay policies. Haier’s HR team ensures compliance with local, national, and international
regulations to avoid legal penalties and maintain employee trust.

Technological Advancements: As Haier continues to innovate in areas such as the Internet of

Things (IoT) and smart home technologies, the company must attract highly skilled professionals
in these cutting-edge fields. The demand for talent in technology roles often drives up
compensation, as companies compete for expertise in areas such as artificial intelligence, data
analytics, and product innovation. Haier’s compensation packages for technical roles are often
designed to meet the expectations of this talent pool, which may require higher salaries, stock
options, or other financial incentives to stay competitive.
Cultural Factors: In different regions, cultural expectations regarding compensation can
influence how Haier structures its pay and benefits. For example, in certain countries, employees
may place more value on job security, healthcare benefits, or pension plans than on performance-
based bonuses. Haier adapts its compensation strategy to reflect these cultural differences,
ensuring that employees in each region feel valued and motivated according to their local
preferences and norms.

9. Maintaining High Performance

Maintaining high performance is a core objective of Haier's HR strategy, and it is deeply
embedded in the company's organizational culture. Haier's unique “Rendanheyi” model—where
employees are encouraged to act like entrepreneurs within the company—creates an environment
where high performance is rewarded, and innovation is continuously driven. Haier focuses on
empowering employees by giving them autonomy, responsibility, and accountability, which helps
sustain a high-performance culture across the organization.

To maintain high performance, Haier emphasizes continuous learning, goal-setting, and

performance feedback. Each micro-enterprise within the company operates independently, but
success is measured based on its contribution to Haier’s overall objectives. This decentralized
structure allows employees to take ownership of their work, fostering an entrepreneurial mindset
where personal success is directly tied to business success. The performance management system
at Haier includes regular goal-setting and real-time feedback, ensuring that employees are
aligned with the company’s strategic priorities and can adjust their efforts accordingly.

Another important factor in maintaining high performance is the company’s investment in

employee development. Haier provides a range of development opportunities, including training
programs, leadership development, and exposure to cross-functional roles. These initiatives help
employees enhance their skills, stay engaged, and remain competitive in an ever-evolving
market. By prioritizing development and offering employees the tools they need to succeed,
Haier ensures that high performance is consistently achieved at all levels of the organization.

A. Appraisal Methods
Performance appraisal at Haier is an integral part of its HRM strategy, designed to assess
employee contributions, provide feedback, and align individual performance with the company's
overall objectives. Haier uses a variety of appraisal methods to ensure a comprehensive
evaluation of both individual and team performance.
360-Degree Feedback: Haier employs the 360-degree feedback method to gather input from
multiple sources, including peers, supervisors, subordinates, and even customers. This method
provides a well-rounded view of an employee's performance, helping to identify strengths and
areas for improvement. The feedback from different perspectives allows for a more balanced
evaluation, which is especially important in Haier’s collaborative and team-oriented work
environment.

Management by Objectives (MBO): The MBO method is widely used at Haier, where
individual and team goals are set in alignment with the company’s strategic objectives.
Employees are assessed based on their ability to meet these predefined goals within a specified
time frame. This method ensures that employees stay focused on contributing to the overall
success of the organization while providing a clear framework for evaluating performance.
Managers and employees collaborate to set measurable goals, and performance is assessed
through periodic reviews.

Self-Appraisal: Haier encourages employees to engage in self-appraisal as part of the

performance review process. This method allows employees to reflect on their own performance,
identify their achievements, and recognize areas where they can improve. The self-appraisal
process is aligned with Haier’s entrepreneurial model, where employees take ownership of their
development and career progression. This method also promotes transparency and encourages
employees to take an active role in their performance evaluations.

Key Performance Indicators (KPIs): KPIs are an important part of Haier's performance
appraisal system, particularly for roles tied to specific business outcomes. Employees are
evaluated based on their ability to meet or exceed key performance metrics that directly impact
the company's bottom line. This data-driven approach provides objective measurements of
success and allows Haier to reward high performers based on tangible results.

B. Employee Benefits
Haier’s employee benefits package is designed to support the well-being of its employees and to
attract and retain top talent. The company offers a comprehensive range of benefits that enhance
job satisfaction and contribute to the overall quality of life for its workforce.

Health and Wellness Benefits: Haier provides extensive health benefits, including medical,
dental, and vision insurance, to ensure that employees and their families have access to necessary
healthcare services. The company also offers wellness programs that promote physical and
mental health, including gym memberships, stress management workshops, and mental health
support. Haier's emphasis on health and wellness is part of its broader commitment to fostering a
healthy work-life balance.

Retirement and Financial Security: Haier offers competitive retirement plans, including
pension programs and 401(k) plans, to help employees plan for their future. These financial
benefits are designed to provide long-term security and stability, allowing employees to focus on
their careers without worrying about their financial well-being. In addition, the company offers
life insurance, disability coverage, and other forms of financial protection.

Work-Life Balance: Haier recognizes the importance of work-life balance and offers flexible
work arrangements, including remote work options, flexible hours, and paid time off. This
flexibility allows employees to manage personal and professional responsibilities more
effectively, leading to higher job satisfaction and productivity. Haier also offers parental leave,
child care assistance, and other family-oriented benefits to support employees during important
life events.

Professional Development Opportunities: Haier invests in the growth of its employees by

providing opportunities for professional development, including tuition reimbursement for
continuing education, leadership training programs, and access to online learning platforms.
These benefits not only help employees advance in their careers but also ensure that Haier
remains competitive by continually developing a skilled and knowledgeable workforce.

C. Health and Safety

Ensuring a safe and healthy work environment is a top priority for Haier. The company is
committed to maintaining high standards of workplace safety and ensuring that employees are
protected from potential hazards. Haier's health and safety policies are designed to comply with
international and local regulations, while also fostering a culture of safety across all operations.

Occupational Health and Safety Programs: Haier has implemented comprehensive

occupational health and safety programs that focus on preventing workplace accidents and
injuries. These programs include regular safety audits, risk assessments, and training for
employees to ensure that they are aware of potential hazards and know how to mitigate them.
Haier’s safety protocols are particularly important in its manufacturing facilities, where
employees may be exposed to machinery and equipment that require strict safety measures.
Employee Training: Safety training is an integral part of Haier’s commitment to maintaining a
safe work environment. Employees are regularly trained on health and safety procedures,
including emergency response, proper use of equipment, and handling hazardous materials.
Haier also conducts drills and simulations to ensure that employees are prepared to respond
effectively in the event of an emergency. This proactive approach helps minimize risks and
ensures that employees are equipped to work safely.

Ergonomics and Workplace Design: Haier also places a strong emphasis on ergonomics and
the design of its workspaces to reduce the risk of injuries related to repetitive tasks or poor
posture. In office environments, ergonomic chairs, desks, and equipment are provided to ensure
that employees can work comfortably and efficiently. In manufacturing environments,
workstations are designed to minimize physical strain and prevent musculoskeletal injuries.
Haier regularly updates its equipment and workspaces to align with the latest safety standards.

Mental Health and Well-Being: In addition to physical health, Haier is committed to supporting
the mental well-being of its employees. The company offers mental health resources, including
counseling services and stress management programs, to help employees cope with work-related
stress and maintain a healthy work-life balance. Haier recognizes that mental health is a key
factor in overall employee productivity and satisfaction, and the company takes steps to create a
supportive and stress-free work environment.

Compliance and Continuous Improvement: Haier continuously monitors its health and safety
performance to ensure compliance with regulatory requirements and to identify areas for
improvement. The company actively engages employees in safety initiatives and encourages
them to report any concerns or hazards they encounter. Haier’s commitment to continuous
improvement ensures that its health and safety standards evolve alongside industry best practices
and technological advancements.